Monarch Airlines (1968) (London Luton) parent Monarch Group has until Friday, September 30, to reapply for its Air Travel Organiser's Licence (ATOL) otherwise the United Kingdom's Civil Aviation Authority (CAA) will force it to suspend sales of holiday packages.
ATOL is a CAA-managed scheme which offers financial as well as repatriation guarantees to customers that have purchased overseas package holidays. According to the CAA, the scheme provides assistance in the event of a tour operator's failure. Permits granted are valid for no more than one year and require rigorous financial scrutiny for renewal.
The Manchester Evening News reports the CAA has expressed concerns about the state of Monarch’s finances and has put in place a contingency plan in the event the carrier’s license is not renewed.
Earlier this week, the UK leisure specialist denied rumours that it was in financial distress and in imminent danger of suspending all operations. It added that it expected to receive a substantial investment from its largest shareholder, Greybull Capital LLC, in the coming days.
